Issue 9, vol. 3 - September 2007

With the start of school, the second-highest spending season of the year has moved into high gear. Tween and teen students (and their parents) in Canada have been hitting the stores with their $1.17B for clothing, shoes and accessories, as well as their $660M in estimated spending on school supplies. Although the majority of the funds for clothes and accessories for back-to-school are coming from the parents (97% and 83% of tweens and teens, respectively), 16% of tweens and 54% of teens are also spending some of their own hard earned dollars.

Contrary to what many often believe Canadian youth continue to focus on making their dollar go further. Smart and stylish teens, girls especially, are shopping the “fast fashion” retailers, those mass-market shops that knock-off or follow designer trends and keep up with teens’ swiftly shifting fashion tastes - but don’t completely drain their wallets. Of the stores Canadian teens shopped at in the past three months, cheap ‘n chic retailers topped the list. Favourite stores for Canadian teen females included the likes of Garage, Bluenotes, H&M, Urban Behavior and Stitches. The mentality of “getting more bang for your buck” will be satiated further by the arrival of the highly anticipated American retailer, Forever 21, to the fashion-forward and price conscious teens in Canada.

As the Canadian dollar lingers on par with the American dollar for the first time in 30 years, teens are also heading to the US to top up their shopping bags. These moves are fueled by the recognition of the loonie’s high value, coupled with teens’ desire to hunt out unique finds as more American retailers penetrate the Canadian market, the latest being Aeropostale. The challenge to have coveted or distinctive pieces is heightened with the continuous arrival of American stores, so Canadian teens are going to the States to seek shops Canada has yet to see on its home turf, such as legendary destinations like Wet Seal and Target.

There is also good news for Canadian retailers. Although only 29% of 14 to 18-year-olds surveyed factor in if a company is Canadian when purchasing products, this consciousness rises with the older segment (39% of 19 to 24-year-olds and 46% of 25 to 34-year-olds). Despite the growth of American fashion brands in Canada and the strength of the Canadian dollar, the tween and teen population of Canada are still spending the big bucks at home.